The Members convened were:

The Honourable Senators

AndersonArnotAtaullahjanAudetteBattersBernardBlackBoehmBoisvenuBonifaceBoyerBrazeauBureyBussonCardozoCarignanClementCordyCormierCotterCoyleDalphondDaskoDeacon (Nova Scotia)Deacon (Ontario)DeanDowneDuncanForestFrancisGagnéGalvezGerbaGignacGoldGreenwoodHarderHartlingHousakosJafferKlyneKutcherLaBoucane-BensonLoffredaMacDonaldManningMarshallMartinMarwahMassicotteMcCallumMcPhedranMégieMiville-DechêneMocklerMoncionMoodieOhOmidvarOslerPatePatterson (Ontario)PetitclercPettenPlettQuinnRavaliaRichardsRinguetteSaint-GermainSeidmanShugartSimonsSmithSorensenTannasVernerWallinWellsWooYussuff

The Members in attendance to business were:

The Honourable Senators

AndersonArnotAtaullahjanAudetteBattersBernardBlackBoehmBoisvenuBonifaceBoyerBrazeauBureyBussonCardozoCarignanClementCordyCormierCotterCoyle*DagenaisDalphondDaskoDeacon (Nova Scotia)Deacon (Ontario)DeanDowneDuncanForestFrancisGagnéGalvezGerbaGignacGoldGreenwoodHarderHartlingHousakosJafferKlyneKutcherLaBoucane-BensonLoffredaMacDonaldManningMarshallMartinMarwahMassicotteMcCallumMcPhedranMégieMiville-DechêneMocklerMoncionMoodieOhOmidvarOslerPatePatterson (Ontario)PetitclercPettenPlettQuinnRavaliaRichardsRinguetteSaint-GermainSeidmanShugartSimonsSmithSorensenTannasVernerWallinWellsWooYussuff

The first list records senators present in the Senate Chamber during the course of the sitting.

An asterisk in the second list indicates a senator who, while not present during the sitting, was in attendance to business, as defined in subsections 8(2) and (3) of the Senators Attendance Policy.

PRAYERS

Senators’ Statements

Some Honourable Senators made statements.

ROUTINE PROCEEDINGS

Presenting or Tabling Reports from Committees

The Honourable Senator Black presented the following:

Wednesday, May 17, 2023

The Standing Senate Committee on Agriculture and Forestry has the honour to present its

TENTH REPORT

Your committee, to which was referred Bill S-236, An Act to amend the Employment Insurance Act and the Employment Insurance Regulations (Prince Edward Island), has, in obedience to the orders of reference of Tuesday, June 7, 2022 and Thursday, November 3, 2022, examined the said bill and, pursuant to Rule 12-23(5), recommends that the Senate not proceed further with Bill S-236.

The committee examined the bill and presented its report to the Senate on June 23, 2022. As a result of concerns identified by the Parliamentary Budget Officer and others, on November 3, 2022, the Senate adopted a motion to refer the bill back to the committee to hear from additional witnesses, including the Parliamentary Budget Officer.

Between June 16, 2022 and January 31, 2023, the committee held seven meetings on this topic hearing from government officials, two former Canadian parliamentarians, the Commissioner for Workers (Canada Employment Insurance Commission), the Parliamentary Budget Officer as well as representatives from two business associations, one labour organization and one civil society organization. The committee also received three written briefs and a 2021 report by the Canada Employment Insurance Commission entitled Final Employment Insurance Boundary Review Analysis.

Since 2014, the Employment Insurance (EI) program divides the province of Prince Edward Island into two EI economic regions: the Census Agglomeration (CA) of Charlottetown, and the region of Prince Edward Island excluding the CA of Charlottetown. Bill S-236 proposes to re-establish a single EI economic region for Prince Edward Island.

In the committee’s view, the EI program should ensure that people living in areas with similar labour market conditions are treated similarly in terms of EI benefits eligibility, benefit rate and length of benefit entitlement within an appropriate scale of population and geographic size.

As such, the committee recommends that the Senate not proceed with Bill S-236 for the following reasons.

The committee wishes to express its frustration that Employment and Social Development Canada officials were not forthcoming with the relevant data and context when they initially testified before us. A reconsideration of the bill might not have been necessary, had the committee initially received more complete answers from the officials.

As part of this reconsideration, the Parliamentary Budget Officer testified at committee. In that testimony, he pointed out that merging both EI regions in Prince Edward Island will generate about $76.6 million in savings for the federal government between 2021-22 and 2025-26, or over a five-year period. That said, the committee also heard that the financial impact of combining the two EI regions in Prince Edward Island into a single region would be a net loss to claimants in the province of approximately $13 million annually in EI benefits. That would amount to a reduction of approximately $15.3 million in rural Prince Edward Island, with an additional $2.7 million in benefits paid in Charlottetown. This information was not provided to the committee by officials from Employment and Social Development Canada in our initial consideration of the bill, as the predicted cost of dividing the province into two zones in 2014 was $1 million according to a Regulatory Impact Analysis Statement.

The Final Employment Insurance Boundary Review Analysis (hereinafter, the report) includes the option of returning Prince Edward Island to one EI zone, which was the intent of Bill S-236 as requested by Islanders in several presentations before the Senate and the House of Commons. There are several interpretations that can support that option, and they can be viewed in a number of different ways in the analysis that is presented.

The committee cannot recommend or appropriately use this report to provide analysis to Bill S-236. The issues unique to Prince Edward Island and solely the subject of Bill S-236 have been subsumed in a national review. There is a complete lack of fiscal analysis in the national review. Furthermore, the review provides no analysis of the alternatives of the impact on the EI program to clients of service delivery and particularly staffing.

The lack of homogeneity in the report is emphasized when the analysis is applied to Prince Edward Island, with no assessment that, in the case of this boundary application, individuals have different qualifications and different benefits living on opposite sides of the street.

Furthermore, the report was guided by the principle of a reset every five years based on delayed rather than the most recent data from Statistics Canada. It is not nimble enough to reflect or appropriately recognize rapidly changing socio-economic environments. Prince Edward Island is a perfect example of this. Despite the position of Employment and Social Development Canada, the employment situation in Prince Edward Island has drastically shifted to near full employment. The EI system is behind the curve in terms of being responsive to the actual circumstances and regions.

At this point in time when some areas have huge labour shortages, and other areas have huge job shortages, the EI system is not reflecting any of that. This is remarkably evident in the case of Prince Edward Island.

Respectfully submitted,

The Honourable Senator Black moved, seconded by the Honourable Senator Smith, that the report be placed on the Orders of the Day for consideration at the next sitting.

The question being put on the motion, it was adopted.

o o o

The Honourable Senator Dean, Chair of the Standing Senate Committee on National Security, Defence and Veterans Affairs, tabled the fourth report of the committee (The subject matter of those elements contained in Division 24 of Part 4 of Bill C-47, An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023).—Sessional Paper No. 1/44-1747S.

(Pursuant to the order adopted April 27, 2023, the report was deemed referred to the Standing Senate Committee on National Finance and placed on the Orders of the Day for consideration at the next sitting.)

Introduction and First Reading of Senate Public Bills

The Honourable Senator Boisvenu introduced Bill S-265, An Act to enact the Federal Ombudsperson for Victims of Crime Act, to amend the Canadian Victims Bill of Rights and to establish a framework for implementing the rights of victims of crime.

The bill was read the first time.

The Honourable Senator Boisvenu moved, seconded by the Honourable Senator Seidman, that the bill be placed on the Orders of the Day for a second reading two days hence.

The question being put on the motion, it was adopted.

Question Period

The Senate proceeded to Question Period.

Orders of the Day

Government Business

Bills – Third Reading

Third reading of Bill C-22, An Act to reduce poverty and to support the financial security of persons with disabilities by establishing the Canada disability benefit and making a consequential amendment to the Income Tax Act, as amended.

The Honourable Senator Cotter moved, seconded by the Honourable Senator Dasko, that the bill, as amended, be read for a third time.

Debate.

ADJOURNMENT

At 4 p.m., pursuant to the order adopted by the Senate on September 21, 2022, the Senate adjourned until 2 p.m., tomorrow.

DOCUMENTS DEPOSITED WITH THE CLERK OF THE SENATE PURSUANT TO RULE 14-1(7)

Order Repealing Interim Order No. 6 Respecting Flooded Areas, dated May 9, 2023, pursuant to the Canada Shipping Act, 2001, S.C. 2001, c. 26, sbs. 10.1(7).—Sessional Paper No. 1/44-1746.

Changes in Membership of Committees Pursuant to Rule 12-5

Standing Senate Committee on Banking, Commerce and the Economy

The Honourable Senator Galvez replaced the Honourable Senator Ringuette (May 17, 2023).

Standing Senate Committee on Foreign Affairs and International Trade

The Honourable Senator Boniface replaced the Honourable Senator Duncan (May 17, 2023).

Standing Senate Committee on Indigenous Peoples

The Honourable Senator McCallum replaced the Honourable Senator Hartling (May 17, 2023).

Standing Senate Committee on National Security, Defence and Veterans Affairs

The Honourable Senator Dagenais replaced the Honourable Senator Patterson (Ontario) (May 17, 2023).